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The encyclopedia · Strategy & Leadership · Operational decision · 2010s–2025

Bata chased Italy's shopping malls for a decade — then the rent caught up

Bata moved its Italian stores from town centres into malls for footfall. When mall rents rose, it began closing them nationwide from mid-2024.

Bata · 2025-01

What happened

Bata, the footwear group founded in 1894, spent recent years pulling its Italian stores out of town-centre high streets and into shopping malls, chasing the higher footfall those malls offered. In the summer of 2024 the company told Italy's labour ministry it planned a wave of closures 'for redundancy reasons' affecting stores across the country — the same mall locations it had bet on.

In Ferrara, Bata shut its city-centre store, then in January 2025 closed the twin location at the Le Valli mall in Porto Garibaldi on the last day of the winter sales, giving its three long-serving, permanent-contract staff two years of wage-guarantee protection before they would need to find new work. A union official said the mall leases behind the closures had simply become 'altissimi' — too high — after years of rising commercial rents.

The union representing the affected workers, Filcams-Cgil, said the dispute was national rather than local, tied to closures happening at Bata stores 'all over Italy' since mid-2024. No insolvency was behind the closures — union and press coverage described a company profitable enough to keep investing globally while still finding its Italian mall footprint too costly to hold.

Why it happened

  • Bata moved stores into malls for better footfall, but that left it exposed to one rising cost — mall rent — across every location, instead of a spread of town-centre leases with varied terms.
  • The closures were announced just before Christmas 2024 and carried out mid-sale in January 2025, so long-serving staff learned their jobs were ending during retail's busiest stretch of the year.
  • Betting the national store network on one real-estate format meant that when that cost rose, the whole strategy had to be unwound store by store rather than adjusted.
What it costNationwide Italian mall closures, jobs cut store by storecostly

The lesson

Chasing footfall by moving an entire store network into one real-estate format concentrates risk in a single rising cost line, with no cheaper format left to fall back on.

Aftermath

Filcams-Cgil said it had escalated the dispute to Italy's Ministry of Labour since the summer of 2024, tracking closures nationally rather than store by store. Affected staff on permanent contracts received two years of social-safety-net wage protection before moving to standard unemployment benefits (NASpI). Bata continued operating its remaining Italian stores and its global business.

Sources

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